Moneylife Events
“At any point of time you should have a valid Will”

Making a Will is simple, but despite its importance, many of us fail to do it. At a packed session organised by Moneylife Foundation, advocate Bapoo Malcolm, explained the key elements to focus on while preparing a Will

A Will simply carries out your wishes after death. One has to give specific instructions about what has to be done with the movable and immovable properties one owns. A well-drafted, properly-executed Will ensures that your wishes are honoured. The courts spend much of their time resolving property disputes for want of a Will or in case of a poorly drafted Will. Despite knowing just how contentious these issues can be, it is common to postpone the making of a Will. At a Moneylife Foundation seminar on “How to write you own Will” advocate Bapoo Malcolm, a very well experienced lawyer in both civil and criminal matters, described to the audience the practical aspects of making a Will.

Explaining the simplicity of creating a Will, Mr Malcolm described that, “A Will is a simple document to be written in simple language. Preferably, avoid legalese. You simply have to give specific instructions about what has to be done with the movable and immovable properties you own and the property you might acquire in future. It would be best if it reads like a balance sheet. Just specify the property and the person.” A Will should be legible and clear to understand. “A Will does not need to be registered, for that matter, even a handwritten Will written on a simple piece of paper will suffice,” he added. A registered Will is also open to being challenged in a court of law, as the content of a Will has nothing to do with its registration. Mr Malcolm emphasised that no matter how many wills a person makes, it is the last Will, or that which is proved to be the last, is what is considered.

A Will needs to be clear and concise, leaving no room for interpretation. “Remember that a Will is basically, ‘you speaking from the grave’. Obviously, you cannot answer any further questions when the Will has to be interpreted,” said Mr Malcolm. “A Will would be interpreted according to the word of the law, which may not assign the same meaning as you intended.” Therefore, one should specify everything in the Will that would be subject to interpretation. For example, while mentioning names it is important to specify the relationship along with the date of birth of the person, as there could be common names. Also, if you wish to intentionally leave someone out of your Will, especially if it is a close family member, it is better to mention the name in the Will, if not, the person may contest the Will by saying you have forgotten their name, he explained.

One should not worry if one feels that one has left out someone, as a Will can always be updated. “One should not wait for the last moment and should prepare a simple Will. This can be updated any time. At any point of time you should have a valid Will,” explained Mr Malcolm.

Mr Malcolm spoke of the basic components of a Will as well as terms such as testator, executor, codicil, testamentary guardian and a detailed discussion on probate of a Will. He covered issues related to Wills, like registration, litigation possibilities, witnesses, executors, intestate problems. He also answered the queries of Moneylife Foundation members who raised their doubts.




4 years ago

I think it is better not to write a Will. Whether a person dies testate or intestate his or her heirs will quarrel after the death of their predecessor.

“For greed all nature is too little”

Delhi gang rape: Juvenile gets three-year sentence

The Juvenile Justice Board sentenced the minor to three years in a probation home, the maximum punishment that can be awarded under the Juvenile Justice Act

In the first conviction in the 16 December 2012, Delhi gang-rape case, the juvenile accused was on Saturday found guilty of murder and rape of the 23-year-old girl but got away with a maximum of three years imprisonment mandated under the juvenile law.


The Juvenile Justice Board (JJB) acquitted the juvenile, who was six months short of 18 years, the age of majority was, however, of attempt to murder the paramedic’s male friend, who was the sole eye witness to the dastardly incident that shook the nation.


The verdict came under attack from the mother of the victim who said it was not acceptable to her. “There was no need for these proceedings. We have been fooled. I don’t accept the judgement. What was the need for keeping us waiting for the whole day,” the victim’s mother said after the verdict.


The Board, presided over by Principal Magistrate Geetanjali Goel sentenced the minor to three years in a probation home, the maximum punishment that can be awarded under the Juvenile Justice Act.


The eight months already spent by the juvenile in custody during the inquiry will be considered as period already served and would be deducted from the three years sentence.


The Board had on 11th July also convicted the accused, a cleaner in the bus in which the victim was raped on the fateful night, in another case of robbery.


It today awarded him the sentence already undergone by him in the probation home for robbing Ramadhar, a carpenter who had boarded the bus but was thrown out before the gang-rape victim and her friend were assaulted.


On the night of 16th December, the 23-year-old victim, a paramedic student, was gang-raped and brutally assaulted by six persons in a moving bus. The victim later succumbed to her injuries in a Singapore hospital on 29 December 2012.


The four adult accused are being tried by a fast-track court in Saket in Delhi. Another accused Ram Singh was found dead on 11th March in his cell in Tihar Jail and the trial against him has been abated.


Incentivizing charitable activities

There is a need for support from think tank of large charities to apply their collective wisdom to come out with more workable propositions between the government and NGOs with transparent objects, management structure and revenue models, especially for education and healthcare

Earlier this year, finance minister (FM) P Chidambaram while promising newer reform initiatives spoke of pushing doses of ‘bitter medicine’. This bitterness needs to be tempered with a slew of radical measures to unshackle well performing voluntary sector institutions or non-governmental organisations (NGOs). These institutions or NGPs are successfully implementing urgent socially relevant tasks that the state has failed in discharging during the course of its mandatory duties more particularly in education and healthcare. Although the FM spoke before the budget, sadly he has not translated this into action in the Union Budget 2013.


Even after six decades of Independence, the government’s performance on many fronts in failure to deliver to the desired expectations has been extremely dismal, more particularly on the education and health care fronts. At the same time, institutions run by the voluntary sector continue to perform phenomenally well, despite roadblocks placed at various stages by the authorities beginning with start up and obtaining the initial Income Tax (I-T) exemption registrations.


Case studies

The Hindu Business Line (August 6, 2013) carries a report of how 600 students from seven Universities across the US managed to raise $15,000. These students gave Rs3 lakh for a restroom for girls in a Karnataka school, a sparkling computer lab for the Lal Bahadur Shastri High School in north Karnataka, Rs5 lakh for providing solar lanterns to artisan and weaver families in Manipur and Mizoram also to make available clean drinking water and sanitation facilities.


Bangalore-based Anuj Viswanathan, the co-founder of online fund raising platform Milaap, says their activities are part of the ‘Live below the Line’ initiative. This is an international campaign set up to address concerns of extreme poverty by creating a scenario in which people must live on $1 a day in a bid to highlight the difficult decisions made daily by people living in extreme poverty. Their global campaign, which focuses on grass root advocacy with youth participation, also seeks to finance micro-loans, provide vocational education training classes for poor workers and help purchase raw materials to increase outputs. This year their anti-poverty campaign raised $450,000. Last year with the participation of more than 15,000 they managed to raise over $3 million.


Harnessing black money

India lost a whopping $123 billion during 2001-2010, out of which $1.6 billion during 2010 alone in black money, making the country eighth largest victim of illicit financial outflow says a report released by the US-based research and advocacy organization Global Financial Integrity (GFI). Its lead economist and co-author, Dev Kar, sadly laments – “It has very real consequences for Indian citizens. This is more than $100 billion, which could have been used to invest in education, healthcare (italicized by me) and upgrade the nation’s infrastructure. Perhaps last summer’s electrical blackout would have been avoided if some of this money had remained in India and been used to invest in the nation’s power grid.”


GFI director Raymond Baker very rightly points out – “The focus on recovery of black money, that is already lost, is futile as long as the Indian economy continues to haemorrhage illicit money. Curtailing the ongoing outflow ought to be priority number one.”   


It very rightly emphasises the urgent need to drive within India the black money to larger investments in education and healthcare.


Information on illicit funds has started forthcoming from countries like France and Switzerland once the government seriously invokes the provisions of the Double Taxation Avoidance Agreements (DTAA) signed with various countries. Just out of the fear of prosecution and penalties, the account holders will ensure that the monies return; for others still sitting on the fence, carrots of incentivization may have to be dangled.


Incentivizing the home-grown billionaires

To the funds stashed overseas, need to be added are the accounted and unaccounted wealth of our ever-growing tribe of millionaires fast turning into 4% of the world’s billionaires! In local banking parlance they were initially termed high net worth individuals (HNIs). When their numbers shot up phenomenally they were upgraded to the glorified status of ultra-high net worth individuals (UHNIs). Funds lying in hoarded hard cash with these individuals are too substantial to quantify and immensely significant too. It only needs the political will on the part of the powers that be at the capital to come out with effective measures to mobilise their full potential.


“India, home to 4% of the world’s billionaires and about 400 million population living below the poverty line, has both the need and the resources for private philanthropic actors to make significant contribution to its socio-economic development. Two decades of economic liberalizations that pulled the country into middle income status has opened the doors to growing domestic inequality that resulted in more pressure on national politics and domestic sources of distribution,” writes Emily Jansons, a research award recipient at the International Development Research Centre in Canada.


The pipelines of foreign aid, especially from UK and the Euro zone have virtually dried up. For the emerging economy country that is India, foreign institutional investments (FIIs) are now a source of large capital inflows. But this unfortunately is extremely hot money that always has tendency to be pulled out any moment depending upon market conditions at home and abroad. Cyprus is one example.


Mandating CSR spending makes little sense in Indian conditions

Exerting pressures by mandating a spend of 2% of the pre-tax profits through compulsory corporate social responsibility (CSR) in the new Companies Bill has to be seriously rethought as it makes for no real sense. The majority of our businesses are family owned. There is a blurring of corporate and personal philanthropies. At times there also exists a close connect too. The families have now come to realise it makes good business sense to go in for more and more into charitable activities more out of part-risk management or smart thinking or self–introspection.


It also flows more out of public pressure on an increasing educated middle class entering into the mainstream of the growing inequality gap between wealth and aspirations and the threat of social unrest fuelled the anti-corruption movements and exposes. One present or gen-next tycoon is quoted to have conceded – “With so much appalling poverty all around, how long will common people tolerate such inequalities? I certainly would not if I were them. I resent it like mad.”  This is the reaction of all right thinking middle class India to-day.


The need of the hour

Our schools and college education, even the Mumbai University are in extremely bad shape. Broken down school buildings, without doors or windows, no blackboards or benches, stinking and overflowing toilets, frequently absent teachers are the bane of schools. Many student-resident doctors of Mumbai’s LTM Medical College are afflicted by chronic TB and hepatitis as a result of insanitary living conditions; the state of affairs at the Grant Medical College is no better. The Mumbai University, once India’s oldest and most revered of institutions, with paper leakages, disputed appointments and marks scandals, forged degree certificates desperately cries for help.


The 8th Annual Status of Education Report 2012 brought out by an NGO Pratham after a study of schools across the country shows that number of Class V students who could not read Class II level text books or solve simple two digit substractions rose from 46.3% in 2010 to 51.8% in 2011 and shot up to 53.2% in 2012. Madhav Chavan from Pratham says, “Measures the government is taking are not working. Since 2012, things are moving in the opposite direction. Discontented with the state-provided education, parents are turning towards private schooling with a vengeance – the percentage of 6-14 age group enrolled there jumped from 18.7% in 2006 to 28.3% in 2012 and this is expected to hit 50% in the course of the next 10 years.”


New born babies die almost every day in the public hospitals from Kolkatta to Srinagar; in Delhi hospital oxygen cylinders run dry leading to death of patients in the ICU. Mumbai’s KEM hospital Paediatric Cardiac Surgery is without an essential hear-lung machine with 700 suffering kids in the queue and 20 patients have already died since January 2012. The Municipal Corporation of Mumbai (BMC) is still in the tendering process. There is an urgent need for the authorities to call upon the privately managed hospitals to fulfil their mandated statutory obligation to treat such emergency cases.


Hand-holding charitable activities with PPP models

Vastness of our country demands putting into place all modes of innovative workings for cause-specific charity models – the model that holds good for education may not necessarily work in the health care segment and vice versa.

We have large corporates like the Tatas, Birlas, Infosys, Wipro, Singhanias, as also religious orders like the Ramakrishna Mission, Swami Narayan, Art of Living, Brahmakumaris, the Jesuits and other Catholic orders, individuals and families  that have set up and been efficiently managing charitable institutions running educational institutions, hospitals and clinics. Their expertise gathered over the years needs to be put to effective use with the GOI encouraging public-private-partnership (PPP) models with them.


As a part of the reform process the government should  hand over  to run under the PPP model, healthcare institutions to Trusts or NGOs with excellent track records of the  likes of the Ramakrishna Mission at Kolkatta and Mumbai,  Dr Devi Shetty’s Narayan Hrudualaya and Manipal Group in Bengaluru, Bombay Hospital that are all running well managed health care institutions. It equally applies in the education and University sector where some of Deemed Universities like the Manipal University have made names for themselves.


The models

The states and autonomous bodies like the Railways, ports, airport authorities, municipal corporations, public sector undertakings (PSUs), India Post and Defence Services are sitting on vast hectares of idle lands that can easily be developed into state-of-the art education and health institutions.


In the PPP model, the land and the buildings constructed thereon can constitute the public contribution and the participating private partner– the Foundation or NGOs can manage them on a build-operate-transfer (BOT) or management fee basis. The governing board can comprise equal representation for each stakeholder in addition to the active participation of locally based apolitical members of civil society with clean credentials forming the third component. This will make for a truly representative and transparent organization. There is also a need to build in representation for those funding like HNIs/FIIs and others choosing to invest substantially.


The taxation laws need to be tweaked in this incentivization process by building in self-regulatory conditions like ensuring adequate information for donors and sponsors, accounting for spending and recognizing arms-length dealings with those at the helm of affairs. As it is practically all educational and healthcare institution are registered as not-for-profit entities to remain outside the tax net. 

All this calls for support from think tank of large charities to apply their collective wisdom to come out with more workable propositions with transparent objects, management structure and revenue models.


(Nagesh Kini is a Mumbai-based chartered accountant turned activist.)


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